Cumulative Delta: to reset or not to reset? - futures io
futures io

Cumulative Delta: to reset or not to reset?

Discussion in Platforms and Indicators

    1. trending_up 2,063 views
    2. thumb_up 0 thanks given
    3. group 3 followers
    1. forum 2 posts
    2. attach_file 0 attachments

Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

Search this Thread

Cumulative Delta: to reset or not to reset?

(login for full post details)
  #1 (permalink)
Coronel Vivida, Parana/Brazil
Posts: 47 since Oct 2020
Thanks: 17 given, 18 received

I was wondering what advantage there could be for resetting cumulative delta after a certain period of time if it is used for divergence trading? The issue with having it reset is that it breaks the sequence, so divergences around that area wouldn't be spotted. Am I right that the only difference resetting the cumulative delta has is on the value of the bars, and if using it strictly for divergence spotting, it would be best to have it continuous and not reset?

Reply With Quote

Journal Challenge April 2021 results (now extended!):
Competing for $1800 in prizes from Jigsaw
looks_oneMaking a Living with the Microsby sstheo
(254 thanks from 25 posts)
looks_twoSalao's Journalby Salao
(60 thanks from 12 posts)
looks_3Deetees DAX Trading Journal (time based)by Deetee
(48 thanks from 18 posts)
looks_4Learning to Profit - A journey in algorithms and optionsby Syntax
(37 thanks from 15 posts)
looks_5Maybe a little bit different journalby Malykubo
(17 thanks from 16 posts)
Best Threads (Most Thanked)
in the last 7 days on futures io
The Crude Dude Oil Trading System
83 thanks
Big Mike in Ecuador
76 thanks
Help improve the FIO community
41 thanks
The New Micro Contract - MICRO BITCOIN coming May 2021
29 thanks
futures io site changelog and issues/problem reporting
21 thanks
(login for full post details)
  #2 (permalink)
Legendary Elite_Member
Wiltshire, United Kingdom
Experience: Beginner
Trading: US Equity Index Futures
matthew28's Avatar
Posts: 981 since Sep 2013
Thanks: 2,458 given, 1,765 received

I remember Market Delta had a continuous cumulative plot but a lot of platforms just reset it at the start of a new trading day. Unless you are swing trading on a chart looking at new highs or lows compared to previous ones of different days I don't see that it makes any difference if using it as a divergence indicator for intraday day trading as, like you say, it is only the value of bars that changes. ie. The shape of the Cumulative Delta plot is exactly the same, it is just at a higher or lower point on the Y axis if reset.

So if using CD intraday in the same way one might use RSI to spot divergence, eg. Price makes a new swing high on a 5/15/30 whatever minute chart but CD doesn't maybe suggesting a selling opportunity, there is no change in the relationship of the CD highs and lows to each other whether reset or not.

(And if you do want a divergence indicator for longer term swing trading, then use RSI).

Trading, ideally structured, is a vehicle for expanding consciousness, not damaging it. - Brett Steenbarger
Visit my futures io Trade Journal Reply With Quote
(login for full post details)
  #3 (permalink)
Gdansk / Poland
Posts: 6 since Oct 2015
Thanks: 3 given, 4 received

If you are an intraday trader (not a swing trader), you should reset CD on each trading day. From my experience, this gives more concise information. However, this is my opinion. I trade intraday on renko charts which I also synchronize to the daily open each new day. I do this for consistency - this way my charts always start building from the daily open.

Reply With Quote

futures io Trading Community Platforms and Indicators > Cumulative Delta: to reset or not to reset?

Last Updated on March 4, 2021

Upcoming Webinars and Events

NinjaTrader Indicator Challenge!


Journal Challenge w/$1,800 in prizes!


Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts